Overview of the EPRI CONTRACTMIX model for coal, uranium, and fuel oil applications

The Contract Mix Model (CONTRACTMIX) is designed to assist fuel supply planners in analyzing the costs and risks of alternative fuel contracting strategies. By explicitly incorporating uncertainty about fuel burn and fuel market conditions into the analysis, the methodology permits the analyst to compare contracting strategies on the basis of cost and risk and to assess the value of flexible strategies and contracts. The model is applicable to fuel and power purchase decisions. CONTRACTMIX may be used at all phases of fuel contract decision-making, from broad strategy formulation to detailed contract design and evaluation. This document, Overview of the EPRI CONTRACTMIX Model for Coal, Uranium, and Fuel Oil Applications, introduces the prospective user to the model's capability for analysis of contracting decisions for coal, uranium, and fuel oil. The document describes the types of problems CONTRACTMIX is designed to address as well as the model's structure, inputs, outputs, and unique features. A separate model overview for natural gas applications is also available (EPRI report TR-102898)